STR is a slowly dying model that exploded in the last 10 years and correcting big time.

But from your post it seems all that may not be correct.

You are correct there certainly are ways for things to be done badly or illegally, but these are BAD MESSY situations before a sub-to deal would even be considered.

@Steve Powers is correct that these were mostly originated as owner occupied loans.

I predict that the guys who are fully leveraged and cash flowing $100 per month will be motivated sellers when the next big correction happens.actually its either them or they walk and its their lenders selling that is what happened in that time period.. and was pronounced in certain markets.for me personally  I don't want to risk  my credit and finances and borrow 75k to make 1200 a year... or even 2400 a year if its a market that has a history of no appreciation and I don't feel there is going to be any significant appreciation.. 2 to 3% a year does not cut it.but I will take 500 a month negative or 10k a month negative if I think there are huge gains at the other end.. 

Quote from @John Friendas: Quote from @Chris Seveney: When buying at auction you will have zero ability to sue (and win) an auction site if information is not correct.  

You are correct re the POA. 

Yes, you do.Here is how to think about it correctly. 

The Tampa Bay area can really be the best of both worlds in terms of appreciation and cash flow, as long as you execute correctly.

If you are using RE investing to try to avoid going to school, your intentions are not in the correct place.